Fresh bearish acceleration on Wednesday eventually took out key near-term support at 1.3450 (former congestion floor) which was repeatedly cracked but without firm break.
Fresh weakness was triggered by stronger dollar, boosted by Fed Yellen’s comments on further rate hikes and hopes on Trump’s tax reform.
Cable hit fresh nearly two-week low at 1.3363 after bears broke below 1.3400 handle (round-figure support / 4-hr cloud base) and may extend weakness towards next targets at 1.3318 (Fibo 38.2% of 1.2773/1.3655 rally) and 1.3282 (rising 20SMA).
Daily RSI reversed from overbought territory and shows enough space at the downside for deeper correction of 1.2773/1.3655 ascend.
Broken 4-hr cloud base now acts as initial resistance, followed by former base at 1.3450 and broken 10SMA at 1.3477.
Res: 1.3400, 1.3450, 1.3477, 1.3514
Sup: 1.3363, 1.3318, 1.3282, 1.3268
